In fact, it doesn’t matter whether you’ve been in business for some time, or you’re new to the real estate industry, the risks you face every day, from failing to cover costs and payment amounts to failing to meet client expectations, make you a prime target for lawsuits. . Even if you are cleared of all claims, the costs incurred in defense, time spent outside of your business, and the added pressure of dealing with the situation can prove costly. Without proper protection, real estate agents can put their professional and financial future at stake.
Also, it is the role of industry titles to protect clients’ escrow and other funds by providing a means for the secure transfer of their real estate in the industry. If an error or breach occurs during this transaction, the agent is responsible for any losses incurred as a result of such error or violation.
Title Agent Errors and Negligence Insurance protects title agents, including escrow agents, closing fee agents, title seekers, and more, against the effects of lawsuits that occur as a result of the negligence and misconduct of title agents and fraudulent wire activities.
This insurance covers all costs suffered as a result of lawsuits that arise claiming alleged errors in the title documentation process, including title search and escrow. Based on this coverage, the insured is given compensation in terms of final settlement up to the policy limit, as well as compensation for defense costs.
Title of Insurance Error and Negligence Agent Under the Fidelity-Pak Program Program
Insurance Underwriting Agent Errors and Omissions under the Fidelity-Pak Program provides a comprehensive range of errors and omissions for real estate agents, including:
Claims related to disability or deficiency coverage
Sometimes a real estate process can become damaged due to a defective or unmarketable title, also known as a property right, which means that there is an omission, error, or other complication associated with ownership of the property that makes it unfit for sale to a buyer. legitimate.
Typically, as part of the settlement process under a contract of title, the buyer will pay a property rights company or attorney to seek title to the property to ensure the seller has legal and marketable rights for a flawless transfer of rights to protect the buyer’s rights. to the property. However, sometimes important details related to property are not recorded in state and county records, which prevents certain information from being known, which puts agents at risk.
Claims relating to defects or insurance deficiencies include claims relating to defects or under-claims resulting from deficiencies or defects that are not publicly recorded.
Coverage of the Consumer Financial Protection Bureau (CFB)
The Consumer Financial Protection Bureau protects consumers from abusive, unfair, or deceptive practices and takes action against businesses that violate the law, such as predatory lending.
If a consumer files a complaint against your company with the CFPB, and upon investigation, the CFPB determines that your company has indeed violated federal consumer finance laws, it could result in litigation.
Coverage of Issues The Consumer Financial Protection Bureau assists with expenses incurred as a result of the problems of the Consumer Financial Protection Bureau. Under this coverage, the Insured receives sub-limit coverage of up to $150,000 for relevant attorneys’ fees, costs and expenses, including civil investigations, hearings, subpoenas, or civil actions taken or received by the CFPB.
Claims Caused by Independent Contractors
Claims caused by independent contractor insurance cover the Insured against claims caused by independent contractors.
At times, you may need to hire an independent contractor to assist you in your real estate business. During this time, it is important to verify that the contractor is covered by insurance, which will cover damages if the contractor’s fault or accident causes damage.
Previous Action Coverage
The Insurance Error and Negligence Agent title covers previous actions Coverage is a liability policy feature that extends the coverage of insurable events to the date prior to policy purchase. In other words, it includes the time between when the service is rendered and when a claim is filed as a result of that service. In this coverage, all claims caused by wrongful actions after the retroactive date and before the end of the policy period are covered.
Coverage of Fraudulent Email Wire Transfers (Third Party)
Under the Fraudulent Email Wire Transfer Protection, compensation is paid on behalf of the Insured, the insured amount becomes a legal obligation to pay up to $1 million for losses incurred as a result of an employee transferring escrow funds from the Insured’s account in reliance on fraudulent email instructions released from criminals claiming to be a legal party to the transaction.
